You expect HGH stock have a 20 return next year and a 30% volatility. You have $25,000 vest, but plan to esta total of $50,000 in GH as g he additional $25,000 by shorting either KBH or LV l stock. Both KBH and Lwi have an expected return of 10% and a volati ty of 20%, If KBH has a co ela or i osum at Which portfolio is superior? Why? (Select the best choice below.) O A. Both portfolios have the same expected return, but shorting KBH is better because we should seek to hold stocks that are positively correlated to reduce O B. Both portfolios have the same expected return, but shorting LWI is better because we should seek to hold stocks that are negatively correlated to reduce O C. Both portfolios have the same expected return, but shorting LWI is better because we should seek to hold stocks that are positively correlated to reduce and LWI has a correlation of -0.5 with HGH, which stock should you short? volatility volatility volatility KBH, some of the common risk shared by the stocks is reduced. 21 O D. Both portfolios have the same expected return, but by shorting KBH, we achieve a lower volatility because it has a positive correlation with HGH. By shorting